Industrial production tops economists expectations

Industrial production for September topped expectations-and it was not just a swing in utilities. The manufacturing component was positive and above analysts' forecasts.

Industrial production jumped an outsized 1.0 percent in September after a decline of 0.2 percent in August. Forecasts were for 0.4 percent. Yes, utilities were the big mover, spiking a monthly 3.9 percent, following a 1.2 percent gain the prior month.

But manufacturing was solid, rebounding 0.5 percent in September after a 0.5 percent decline the month before. Expectations for the manufacturing component were for a rise of 0.4 percent. Mining advanced 1.8 percent, following a 0.3 percent increase in August.

Within manufacturing, the production of durable goods increased 0.4 percent in September. The durables subcomponent was led by the aerospace and miscellaneous transportation equipment. The production of nondurable goods moved up 0.5 percent in September. With the exception of petroleum and coal products, each of the major components of nondurables posted gains in September.

Overall capacity utilization jumped to 79.3 percent from 78.7 percent in August.

Manufacturing appears to have regained some steam for the U.S. economy. The third quarter still appears likely to post moderately healthy growth. Today's jobless claims report adds to that argument.